ASX 200 Tests Support, Global Markets in Focus

• ASX 200: Broke below trendline support; sentiment pressured by global growth; US markets to guide recovery.
• BHP Group Limited (BHP): +0.05% Wednesday; -4.19% month, -2.14% YoY; suspended Saraji South mine; between 50- and 200-day EMA.
• RIO Tinto Limited (RIO): -0.63% Wednesday; +4.29% month, +0.94% YoY; secured $40M scandium oxide deal with US Defense Logistics Agency.
• Northern Star Resources Limited (NST): -0.04% Wednesday; +27.96% month, +44.26% YoY; nearing all-time high as gold and silver climb.

During Wednesday’s trading, the ASX 200 slipped to test a recent support level. The index broke below the bottom of its trendline, which may leave some traders cautious. Concerns about global growth continue to weigh on sentiment, especially given Australia’s reliance on commodities and demand from Asia.

It is also important to note that major indices around the world often move in the same direction. Movements in the US markets frequently set the tone for Asia’s next session. In Australia’s case, trade tariffs from the US remain a key risk, as they could influence Chinese demand for raw materials.

BHP Group Limited (BHP)

BHP Group Limited gained 0.05% on Wednesday’s session. However, over the past month, the stock is down 4.19%. Looking at the past year, BHP remains lower by 2.14%, with the materials sector facing challenges from global tariffs and concerns over slowing economic growth.

The company has suspended production at its Saraji South mine in Queensland due to unprofitability and lower margins. This decision comes despite steady medium-term demand for metallurgical coal. From a technical perspective, BHP is currently trading between its 50-day EMA and 200-day EMA. This zone often brings additional volatility and uncertainty for traders watching the stock.

RIO Tinto Limited (RIO)

RIO Tinto closed down 0.63% in Wednesday’s session. Despite that, the stock has gained 4.29% over the past month. Looking at the past year, RIO is only up 0.94%, as questions remain about the global economy and whether demand for its key resources will stay strong.

At the same time, RIO Tinto has secured a supply deal with the US Defense Logistics Agency. The agreement covers scandium oxide worth up to $40 million over the next five years, a development that exceeded market expectations.

Northern Star Resources Limited (NST)

Northern Star Resources Limited was little changed on Wednesday, slipping by just 4 basis points. Despite this, the stock has surged 27.96% over the past month and 44.26% over the past year.

NST is now approaching its all-time high as both gold and silver prices continue to climb. The company remains well-positioned to benefit from strong demand for precious metals and has been one of Australia’s top performers.

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